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A dip in the Paternoster share price may offer a decent opportunity
In January, Paternoster Resources (LSE:PRS) entered into an agreement with Riverfort Global Capital. Paternoster will work closely and co-invest alongside Riverfort in opportunities within the natural resources sector. The announcement of the deal coincided with a placing to raise £850k at 0.11p in which sizeable stakes were taken by institutional investors. Yesterday Paternoster announced the appointment of Andrew Nesbitt as a non-executive Director. Andrew is a qualified mining engineer and has 20 years’ experience in the natural resources sector. He’s a consultant for Riverfort and is also an experienced investor. Paternoster chairman Nicholas Lee commented about Andrew, saying that they look forward to ‘benefiting from his knowledge and experience in portfolio management as well as his in-depth knowledge of the natural resources sector’.
A look at the share price chart reveals that paternoster is currently in the middle of a long-term downward wedge pattern. The price reached 0.17p following the deal news in January but has fallen back towards the placing price, currently sitting at 0.13/0.14. The placing price of 0.11p may well be the floor here, particularly with anticipation of steady newsflow regarding investments and the strong institutional buying to date.
Author: Stuart Langelaan
The author does not own shares in the company mentioned in this article